A high-end hotel along the Hollywood Walk of Fame in Los Angeles has sold as investor demand returns to a hospitality sector primed to rebound from the pandemic.
Honolulu real estate investor Trinity Investments bought the 305-room W Hollywood hotel at 6250 Hollywood Blvd. for an undisclosed price. The seller of the 4.5-acre property was Bethesda, Maryland-based real estate investment trust Host Hotels & Resorts, which acquired the property in March 2017 for $219 million, or $718,000 a room, according to CoStar research.
The property, which opened in 2010, features 11,000 square feet of retail space and multiple billboards. The hotel offers a sound suite for rent, rooftop pool, meeting space and a fitness center. The property also has some privately owned residences.
Representatives of Trinity Investments and Host Hotels & Resorts didn't respond to requests for comment.
The sale comes as Hollywood-area hotels struggled with occupancy during the pandemic, as the market relied heavily on tourism, especially international travel. The Standard in West Hollywood, California, closed in January 2021 after more than two decades of operation as the owners struggled to make rent payments on the hotel's ground lease.
Still, recent greater Los Angeles hotel sales have indicated buyers are bullish long term on the market, said Alan Reay, president of Atlas Hospitality Group, a hotel brokerage firm based in Irvine, California, who is not involved in the W deal. Reay said he expects the W Hollywood's sale to be for a competitive price, as the hotel's location in the heart of Hollywood is attractive to investors.
"From a buying standpoint, it's as if COVID never happened," Reay said of some recent L.A. hotel sales.
The W Hollywood deal comes after Trinity Investments raised a $520 million fund in June to acquire luxury resorts and hotels in the U.S., according to a statement. The firm has been involved in more than $7 billion worth of real estate investments in the past 25 years and operates an office in Beverly Hills.